DOL’s Final Rule Increases Salary Thresholds for Overtime Exempt Employees

The Department of Labor announced a final overtime rule.The FLSA, amongst other things, requires that employees be paid overtime for all hours that are worked above 40 hours in a workweek. There are exemptions to these overtime rules, which allow an employer to for go paying overtime to certain employees. The “white-collar” exemptions apply to executive, administrative, or professional employees who receive a fixed and predetermined salary, meet a certain salary threshold, and perform executive, administrative, or professional duties. There is also an exemption for highly compensated employees. It is highly likely that once the final rule is formally published, it will face legal challenges. In 2016, a very similar rule was announced that would have increased the salary thresholds and provided for automatic increases.